Question $3(\backslash (\backslash$mathbf$\{30\}\backslash )$ marks$).$ The following option price quotations on Xerox stock are observed: Type of option Exercise Price $($E$)$ Option Premium $(\backslash (\backslash$mathrm$\{$V$\}\_\{\backslash$mathrm$\{$C$\}\}\backslash )$ or $\backslash (\backslash$mathrm$\{$V$\}\_\{\backslash$mathrm$\{$P$\}\}\backslash ))$ Call $\backslash (\backslash$$ $45\backslash )\backslash (\backslash$$ $8\mathrm{.}00\backslash )$ Call $3\mathrm{.}50$ Put $5\mathrm{.}50$ Put $6014\mathrm{.}00$ Xerox stock is currently selling in the market for $\backslash (\backslash$$ $48\mathrm{.}50\backslash ).$ a$)$ Which options are in the money, at the money or out of the money? b$)$ Compute the intrinsic and time value for each option. c$)$ Compute the breakeven level of stock price for each option. d$)$ Suppose you buy one $50$ call option and one $50$ put option and hold your position to the expiration date. Calculate your net profit $($payoff$)$ at expiration given the following stock prices $($So$)$: $\backslash (35,40,45,50,55,60\backslash )$ and $65.$ Sketch the graph. $($Note: remember contract is for $100$ shares$)$